{"id":48543,"date":"2021-08-30T16:57:44","date_gmt":"2021-08-30T13:57:44","guid":{"rendered":"https:\/\/forklog.com\/en\/?p=48543"},"modified":"2025-09-02T02:43:10","modified_gmt":"2025-09-01T23:43:10","slug":"billionaire-john-paulson-calls-cryptocurrencies-a-bubble","status":"publish","type":"post","link":"https:\/\/forklog.com\/en\/billionaire-john-paulson-calls-cryptocurrencies-a-bubble\/","title":{"rendered":"Billionaire John Paulson calls cryptocurrencies a bubble"},"content":{"rendered":"

John Paulson, famed for his successful bet against the mortgage-backed securities market in 2007, told Bloomberg<\/a> in an interview that cryptocurrencies are a bubble that will become worthless.<\/p>\n

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“I would not recommend investing in cryptocurrencies,” he said.<\/p>\n<\/blockquote>\n

The publication noted that after the peak of $38 billion in Paulson’s assets under management in 2011, they shrank to predominantly his personal funds of $9 billion, which he manages as part of his family office.<\/p>\n

The billionaire prefers gold as a hedge asset to Bitcoin. In his view, the current 25% expansion of the money supply will push inflation higher than expected, fueling frenzied demand for the precious metal.<\/p>\n

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“Cryptocurrencies are a finite supply of air. There is no value in any digital asset other than its limited supply.”<\/em>, the investor explained.<\/p>\n<\/blockquote>\n

Paulson rejected the idea of shorting cryptocurrencies after claiming that their price would crash to zero as liquidity inflows dried up.<\/p>\n

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“They have unlimited downside potential. If I am right in the long run, in the short run I’ll be left with no pants because of the excessive volatility.”<\/em>, the billionaire explained.<\/p>\n<\/blockquote>\n

Earlier in May, Charlie Munger, Warren Buffett’s ally, told<\/a> of his hatred for bitcoin. In February, the legendary investor himself reiterated the thesis that digital assets have no value.<\/p>\n

Subscribe to ForkLog’s channel on YouTube<\/a>!<\/p>\n","protected":false},"excerpt":{"rendered":"

John Paulson, famed for his successful bet against the mortgage-backed securities market in 2007, told Bloomberg in an interview that cryptocurrencies are a bubble that will become worthless.<\/p>\n","protected":false},"author":1,"featured_media":48544,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"select":"1","news_style_id":"1","cryptorium_level":"","_short_excerpt_text":"","creation_source":"","_metatest_mainpost_news_update":false,"footnotes":""},"categories":[3],"tags":[18,1269,536,1156,1224,1138],"class_list":["post-48543","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news-and-analysis","tag-bitcoin","tag-cryptocurrencies","tag-gold","tag-institutional-investors-and-whales","tag-macroeconomics","tag-opinions"],"aioseo_notices":[],"amp_enabled":true,"views":"40","promo_type":"1","layout_type":"1","short_excerpt":"","is_update":"","_links":{"self":[{"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/posts\/48543","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/comments?post=48543"}],"version-history":[{"count":1,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/posts\/48543\/revisions"}],"predecessor-version":[{"id":48545,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/posts\/48543\/revisions\/48545"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/media\/48544"}],"wp:attachment":[{"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/media?parent=48543"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/categories?post=48543"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/tags?post=48543"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}